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This Month's Exclusive Story Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?By Jennifer Ryan Woods. Publication Date: 3/4/2026. 
Key Points - FIGS stock has surged nearly 260% over the past year, hitting a price not seen since shortly after its 2021 IPO.
- Q4 revenue topped $200 million—the company's best quarter ever—with scrubwear sales up 35% and international sales jumping 55%.
- Despite the rally and bullish analyst commentary, the consensus price target sits almost 30% below current levels.
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After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back to life and is trading at a level it hasn't seen in nearly four years. The stock, now above $17, has surged almost 260% over the past year, including a 58% jump in the last month alone. The rally has been driven by strong earnings and a wave of bullish analyst commentary. Yet despite that momentum, the consensus 12-month price target sits at just $12.25—almost 30% below the current price. That gap raises a key question: how much of FIGS' recovery is supported by fundamentals, and how much is pure momentum? A closer look at the company's history and recent results helps provide some clues. Early investors in FIGS saw a quick windfall after the company's May 2021 IPO, which debuted at $22 per share and shot to $50 within a month as pandemic-driven demand boosted medical apparel. As COVID-19 demand eased, shares reversed sharply and fell below $8 within a year. For the next several years FIGS largely traded in the single digits; after dipping under $4 in April 2025, the stock began another upward run. Earnings Momentum Sparks Rally Steady gains followed positive Q1 and Q2 2025 earnings reports, but the Q3 2025 results, released on Nov. 6, pushed the stock higher. That report showed stronger-than-expected revenue growth, solid demand across core businesses and healthy margins despite tariff pressures. FIGS also raised its full-year guidance for net revenue and adjusted EBITDA margins. Wall Street applauded: the stock climbed more than 30% the following week and prompted Zacks Research to upgrade the company to Strong Buy from Hold. The momentum carried into the most recent quarter. The Q4 2025 earnings released on Feb. 26 highlighted a 33% year-over-year jump in revenue and the company's strongest quarterly sales to date—topping $200 million. In its earnings call, FIGS noted broad-based strength, including growth in its active customer base and higher average order values, and even pointed to a marketing win after outfitting Team USA's medical team at the Winter Olympics. Scrubwear—FIGS' core product, responsible for more than three-quarters of net revenue—was a standout, with sales up 35%. International revenue also accelerated, rising 55%. For the fiscal year, net revenue climbed 14% to a record $630 million. Despite tariff-related pressure on gross margins, profitability was solid: full-year adjusted EBITDA margin beat the company's target by more than 200 basis points. Analysts Applaud Earnings and Outlook FIGS issued a constructive outlook for the year ahead, citing continued demand driven in part by growth in healthcare employment. Management outlined plans to expand into additional international markets, prioritize growth opportunities across its businesses, and maintain its stock buyback program. For fiscal 2026, the company expects net revenue growth of 10%–12% and improving profitability targets. The analyst community reacted positively. Barclays upgraded the stock to Strong Buy from Hold; KeyCorp moved to Overweight from Sector Weight with a $17 price target; Goldman Sachs raised its view to Hold from Strong Sell; BTIG reiterated Buy with a $15 target; and Telsey Advisory increased its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' earnings momentum is the clear catalyst behind the move to four-year highs. Shares began rising before the Q4 report—jumping nearly 14% in the session ahead of the release—and the rally intensified after results. The stock surged 24% on the first trading day after the report, then added another 10% the following day. As of March 4, the stock was trading above $17. That level is well above Morgan Stanley's $8 target issued in January and exceeds the $17 target set by KeyCorp. The gap between bullish analyst sentiment and relatively low price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At current prices, the shares trade at a price-to-earnings ratio near 90, implying much of the company's anticipated growth may already be priced in. There are few direct, publicly traded peers to FIGS. lululemon athletica inc. (NASDAQ: LULU)—a dominant name in lifestyle apparel—is trading at a P/E of less than 12, underscoring the valuation gap. The bottom line: investors are rewarding FIGS for its turnaround, but skepticism remains over whether the rally can continue or if a pullback may follow.
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